WASHINGTON - Oklahoma Senator Tom Coburn is part of a bipartisan group of eight senators announcing a deal that lets students avoid higher interest rates on federal loans.

The bipartisan group of senators on Thursday told reporters they've reached a compromise to lower the rates for students who borrow from the federal government.

Coburn's office says the Bipartisan Student Loan Certainty Act requires that, "for each academic year, all newly-issued student loans be set to the U.S. Treasury 10-year borrowing rate (specifically, the yield on the 10-year note as determined by the last auction held before June of each year—not the changing daily rate) plus add-ons to offset costs associated with defaults, collections, deferments, forgiveness, and delinquency."

Coburn says the plan is a compromise that is a "win-win" for taxpayers and for students who were facing interest rates that doubled from 3.4 to 6.8 percent.

"This compromise is a win-win for both students and taxpayers," said Senator Tom Coburn. "Tying interest rates to the market allows students to take advantage of historically low rates while ensuring taxpayers will not have to foot the bill for arbitrary rates set by Congress. I am pleased senators agreed on a permanent, principled solution instead of a short-term political fix."

The House has already passed similar legislation and the differences could be resolved before students return to campus.

The Associated Press contributed to this report.